Why Ford Earnings Tumbled 35%

Why Ford Earnings Tumbled 35%
Why Ford Earnings Tumbled 35%
Author

30 April, 2017

Wall Street expected earnings of 35 cents per share, according to analysts polled by FactSet.

Ford said it still expects to post a full-year 2017 pretax profit of around $9 billion, down from a record of $10.4 billion in 2016. In last year's first quarter, the automaker reported $37.7 billion in sales. The company recalled more than 230,000 vehicles because of the risk of engine fires and 210,000 vehicles for defective door latches.

In Asia, Ford said it earned a pretax profit of $US124 million compared with $US220 million for the same period previous year.

Ford Motor Co.'s first-quarter profit fell 35% from a year earlier amid higher costs and weaker US sales, sending the stock down 1.7% in early afternoon trading.

Higher costs had been created by an increase of $467 million in warranty costs, an increase of $176 million in costs of commodities and an increase of $253 million in costs to launch new products.

National Day of Prayer observance set May 4
However, praying publicly is not a requirement for attending, he said. "It's very simple, and we love to do it", Hanselman said. On April 17, 1952, President Harry Truman signed a bill proclaiming the National Day of Prayer into law in the United States.


Brexit: Donald Tusk says EU-27 must remain united
And he said Britain should harbor no illusion of getting out cheaply. "If you are no longer part of a club, it has consequences. It will be their first meeting since British Prime Minister Theresa May triggered the official withdrawal process a month ago.


Player ratings: Chelsea in control as they defeat Southampton
Whether or not Costa is still a Chelsea player next season is immaterial in respect of the current campaign. These are the most important things for us.


Ford delivered 1.7-million vehicles globally in the first quarter, while Daimler delivered 754,300, of which 568,100 were Mercedes-Benz cars. Of Ford's profitable regions (it lost money in South America and Africa), North America had the biggest decline in profitability. Ford's North American market share dropped as it sold fewer vehicles to rental fleets, but it said US sales to individual buyers were up. Ford said Thursday it expects industrywide sales to decrease a little this year and in 2018.

Ford said earlier this month that its first-quarter sales had fallen 4.4% from the same period a year ago to 617,302 vehicles, with auto sales tumbling 22.4% but more profitable SUV and truck sales rising 2.6% and 3.8%, respectively.

Ford plans to cut $3 billion in costs this year and expects profit to rebound in 2018, driven by continued strength in the US pickup-truck market, the rollout of two new full-size SUVs and improving results at Ford Credit. The industry as a whole saw a transaction price increase of $506.

Ford shares closed at $11.60 in New York Wednesday after rising 1.05% on the session, trimming their year-to-date decline to 4.4% compared to a 6.65% gain for the S&P 500 benchmark. Revenue rose slightly as the company sold a higher mix of high-profit trucks and SUVs. Ford's Super Duty pickups came out last fall, for example, so the company will be able to command less for it as this fall rolls around. The European profit was down $258 million from the first quarter of 2016 and the Asia Pacific profit was down $96 million.


More news


  • United Kingdom police foil second London terror plot in a day

    Neighbor Maxine McKenzie said she saw "a lot of frenetic police activity" and a woman being taken out of the house on a stretcher. In the end, Khalid Masood was shot by bodyguards to Defense Secretary Michael Fallon, who were at Parliament by chance.
    Google Home is now your flawless  kitchen assistant with new recipe feature

    Google Home is now your flawless kitchen assistant with new recipe feature

    Google Home has finally arrived in the United Kingdom , bringing a number of exciting new features to the connected home. It's pulling these recipes from the likes of Bon Appetit and Food Network so there's bound to be something for everyone.
    'Bachelor' star Chris Soules charged in deadly Iowa crash

    'Bachelor' star Chris Soules charged in deadly Iowa crash

    The documents also say that while out of jail, Soules is not allowed to leave Iowa without written consent from the court. Chris ended up fleeing the scene of the accident and was arrested soon after, but is already out on a $10,000 bond.
  • Apple is Reportedly Working on Its Own Version of Venmo

    Apple is Reportedly Working on Its Own Version of Venmo

    PayPal , which owns Venmo , offers the service for no fee for users that attach debit cards or bank accounts. This rumor has been going on for years, but 2017 might be the year of peer-to-peer Apple Pay.
    US Navy fires warning flare at Iran vessel in Persian Gulf

    US Navy fires warning flare at Iran vessel in Persian Gulf

    Iran has been trying to make its presence notable in the Persian Gulf over the years especially along the Strait of Hormuz. This latest incident is among a growing list of Iranian provocations against U.S. forces, mostly maritime, in the region.
    Venezuela threatens to exit OAS as pressure on Maduro mounts

    Venezuela threatens to exit OAS as pressure on Maduro mounts

    Protests enter fourth week, with opposition calling for early elections . "It's crucial that we stay here all day". The decision was later reversed amid a storm of worldwide criticism - and from Ortega Diaz herself.
  • Sawmill Fire Grows to 18000 Acres, Windy Conditions Ground Air Tankers

    Sawmill Fire Grows to 18000 Acres, Windy Conditions Ground Air Tankers

    No injury or structure damage has been reported from the fire but hundreds of homes remain under pre-evacuation notices. The higher level teams have more personnel and more experience in fighting large and complex fires, he said.

    Trump tweets don't help: 1st Twitter revenue drop since IPO

    Noto said Twitter wants to air live video to users 24 hours a day, seven days a week via its desktop and app offerings. Still, the company said it expects revenue growth to continue to "meaningfully lag audience growth in 2017".

    Trump suggests he'll take 'sanctuary cities' case to Supreme Court

    Judge Orrick said that the language of the executive order made clear it sought to withhold funds beyond law enforcement. If he wants to take his case to the Supreme Court, he will have to through the 9th U.S.
  • Caitlyn Jenner says she'd consider a political run

    Caitlyn Jenner says she'd consider a political run

    While the former Olympian said she hasn't seriously weighed her options yet, a political run isn't out of the question. On April 24, she stated that her loyalties ultimately belonged to the transgender community.
    Student In Custody After Bringing Gun To Middle School

    Student In Custody After Bringing Gun To Middle School

    On their twitter page , the Mason County Sheriff's Department said they are continuing to search school buildings. Clifford O'Findlay Middle School in North Las Vegas was briefly placed on a lockdown while officers investigated.
    US FCC chairman to propose reversing 'net neutrality' rules

    US FCC chairman to propose reversing 'net neutrality' rules

    Blumenthal said jobs and economic progress - not just consumer convenience - is at stake if the FCC rules are changed. His full proposal is expected to be published online Thursday and be voted on by the FCC on May 18.